Why Should I Buy or Sell?
When Should I Buy or Sell?
Perhaps the most pertinent question in today's housing market is when to buy or sell. To determine the state of the market, Realtors tend to use the affordability index, home prices and available financing.
Homebuyers and sellers have a perfect opportunity to time the market. While there is a lot of press about prices increasing, those increases are relatively minimal to date. With low inventory, prices are likely to increase going forward. But for now, for sellers that want to sell, and buyers that want to buy, it is perfect timing.
Add to that the historically low interest rates and the availability of second mortgages that can be used for a portion of the downpayment, it is perfect timing for buyers who need a chance to put 10% down on the home of their dreams. This applies to first-time homebuyers or those either upsizing or downsizing.
Furthermore, the most recent Existing Home Sales release showed a 5th consecutive month of home prices higher than a year ago. And although home prices are edging up, the housing affordability index suggests that the national median home price was actually slightly more affordable for the median income family in July 2012.
While prices are edging up compared to one year ago, mortgage rates are nearly a percentage point lower and incomes are up. Since the Housing Affordability Index factors in the effect of house prices AND income and mortgage rates, it is the case that nationally, the median priced home is slightly more affordable to the median income family than it was a year ago.
With the high affordability index, easier access to financing and relatively low home prices, this is an ideal time to start looking to buy or sell residential real estate.
Wish Sotheby's Realty in Sherman Oaks sells homes in Tarzana, Encino, Van Nuys, Sherman Oaks, Studio City, Toluca Lake, Hollywood, Hollywood Hills, Bel Air, Beverly Glen and West Los Angeles.